Jet engine maker Rolls-Royce is the top faller on the FTSE 100, down 4.5%, with British Airways parent company IAG losing 4%.
Intercontinental Hotels has lost 2.2%, with Premier Inns owner Whitbread off 1.8%.
Among smaller companies, cinema chain Cineworld has lost 4.6% — it was forced to temporarily close its UK and US sites last week.
Stephen Innes, chief global markets strategist at axi, says the “much-dreaded” autumn/winter coronavirus surge is threatening the recovery.
“The tail risk is how lawmakers deal with this surge, and the way consumers interact remains the wild card. While a return to draconian confinement measures is unlikely, the most prominent threat to the economic recovery is fear of the virus, not necessarily the soft lockdowns or social gathering restrictions.
“It is fear that could keep people hunkered down in their apartments until the curve flattens or the vaccine is available. And It could sound a significant downbeat to the economy.”